Data Center Research: Teri S.
Data centers power modern life and can bring both investment and jobs. Clear rules on energy procurement, water use, land siting, community engagement and cost recovery will determine the success or failure for our citizens. Every time you stream a movie, open a website, use a cloud app, or send an email, a data center is working. The centers reliably store, process, deliver, and protect vast amounts of data. Many businesses have relied on them for decades, but what’s changed is that the centers are now being built to train and run AI, which needs more power and specialized hardware. Not all data centers are the same, as some power global tech giants (100-500 acres), while others, some in typical business buildings, support small businesses and specific government operations.
The growing demand of these centers can bring economic benefits like construction jobs and tax revenue, but their immense energy and water consumption strain local resources and grids. Their building generates hundreds of well-paying, temporary jobs for technicians, electricians, and other local building trade workers. There are also good-paying opportunities for full-time staff, like technicians, security staff, and facility managers. At Google’s data center in central Ohio, salaries range from about $74,000 for a technician to more than $160,000 for an operations manager. Yet these positions are fairly limited. A review of more than 1,200 U.S. data centers found that even the largest employ fewer than 150 permanent workers, and sometimes as few as 25.
These centers also generate revenue for local or state governments through property, sales and use taxes. A recent national estimate found that total government revenues associated with the data center sector increased from $66 billion in 2017 to more than $162 billion in 2023. However, many states and cities offer sizable tax incentives to attract the centers, meaning the actual gain can be far smaller than projected.
And so there’s water: Data centers require huge amounts of water to keep servers cool enough to function. Mid-sized facilities can use up to 300,000 gallons of water a day, while large facilities can consume as much as 5 million gallons daily — comparable to what a small town uses. This massive demand is a pressing problem for communities already facing drought or depleting water supplies. Some data centers are using cooling approaches that reduce water demand, such as traditional air cooling or liquid immersion. Others are leveraging reclaimed wastewater from utilities instead of drawing from local supplies. This can also lead to lower carbon emissions and improved sustainability.
Reducing air pollution and climate impacts: Some facilities are beginning to adopt cleaner on-site power alternatives. Battery energy storage systems can replace diesel generators during outages, avoiding their high pollution. Pairing hybrid microgrids with renewables is another alternative that supports community resilience without increasing emissions. I think when you hear the phrase backup generators, you think, well, they don’t use those very often, right? Actually, these backup generators run a lot more frequently than you think, just because you have to turn them on and off for testing and maintenance. Also, if there is any sort of power imbalance, they are put to use. And they run mostly on diesel. So they have a pollution impact that is significant and that people don’t often associate with data centers.
To address mitigating noise: some data center developers and local governments are beginning to use measures such as natural acoustic barriers, greater setbacks from homes and improved insulation for backup generators. In places where zoning codes include noise protections, local governments can use the permitting processes to require projected decibel levels, noise mitigation plans and ongoing monitoring commitments.
Electricity costs: Many states and utilities are exploring ways to ensure that data centers can come online without shifting costs to other ratepayers. Last year, utility AEP Ohio introduced a new rate schedule for data centers requiring them to pay for at least 85% of the energy they are subscribed for, regardless of how much they actually use. Other states, like Oregon, Minnesota, and Missouri, have required utilities to create new billing classes and rate structures for large energy users so that their costs aren’t shared by households and businesses.
The need for regulation and integrating renewables and new-cost effective strategies to keep our county beautiful and livable for all is, in part, up to our commissioners! No tax incentives for these generally wealthy corporations; integrating clean power, emissions, and noise considerations into permitting and comprehensive planning; requiring companies to disclose on-site power strategies; and evaluating cleaner alternatives during permitting review. There have been corporations actually asking local government officials to sign NDAs, so I believe providing public comment and disclosures before any data centers are permitted is essential.
